PINEWOOD THE CASE FOR EXPANSION - Pinewood Studios

42 | PINEWOOD – THE CASE FOR EXPANSION 05 THE CASE IN 3 DIMENSIONS 05 THE CASE IN 3 DIMENSIONSPINEWOOD – THE CASE FOR EXPANSION | 4305 THE CASE IN 3 DIMENSIONS5.1 The UK film industry needs to increase its physical production capacity to servea growing international market. This is supported by UK Government economic,fiscal and creative industries policy.5.2 Pinewood Studios will need to be the principal provider of this expansion ifinternational investment in global film production is to be successfullyattracted to the UK. There are no other viable alternatives and the expansionhas to take place adjacent to the strategic hub that is Pinewood. This is thejustification for expansion of Pinewood Studios in its current location.THE5.3 The case for the expansion of Pinewood Studios on to adjacent CASE Green Belt landhas been influenced and determined by three overlapping dimensions of:• the commercial market (global and UK)• Government policy• Pinewood’s role and performanceCOMMERCIAL MARKETPINEWOOD STUDIOSGOVERNMENT POLICY5.4 These dimensions have been examined in detail in the preparation andassessment of the PSDF scheme. They provide a clear and coherent basis forthe definition of the very special circumstances required to obtain a planningpermission within the Green Belt.Pinewood is integral to the industry, given its successful brandand reputation. There is no doubt that we need to expand to keepup with changes elsewhere. If we don’t, other countries certainlywill, as there is increasing recognition of the value of the culturalindustries and incentives being introduced to exploit the growthof this global market.Fiona Clarke-Hackston, BASCChief Executive, British Screen Advisory CouncilFig. 8: Key influencesCOMMERCIAL MARKETTHECASEPINEWOOD STUDIOSGOVERNMENT POLICYCOMMERCIAL MARKETTHECASEPINEWOOD STUDIOSA. The Commercial Market (global and UK)CASE5.5 The most significant and strategic influence is the growing internationalmarket for major film and television as well as a range of other screen-basedmedia productions.5.6 The scale of this market and its trend is identified in the market reviewundertaken by PwC 7 as shown on Fig 9. This shows a current 2012 annualconsumer spend of c. $576 bn projected to rise to $728 bn by 2016.5.7 The growth rate for film/TV is c. 6.0%.GOVERNMENT POLICYCOMMERCIAL MARKETPINEWOOD STUDIOS5.8 The contribution of film/TV is the significant majority at c. 90%.GOVERNMENT POLICY5.9 This is the consumer market which is providing growth opportunity for theUK and in which Pinewood operates to distinction.THECOMMERCIAL MARKETTHECASEPINEWOOD STUDIOSGOVERNMENT POLICYFig. 9: Global revenue from screen-based entertainment 2007-2016Total revenue ($bn)8007006005004003002001000466448233948954823534905583351Compound Annual Growth Rate523578538007-11545598540111-16FORECAST2007 2008 2009 2010 2011 2012 2013 2014 2015 201657662884266046691447Composition648719448367977975062012728831005452016Video games7.2%7.2%Film15.5%13.7%Film1.0%3.1%Television73.5%74.8%Television4.3%6.4%TOTAL89.0%88.5%TOTAL4.0%6.0%7. Market Review – PwC (document no. 6)